Hong Kong workers see real salary growth slow to 1.1% in post-pandemic low

Workers in Hong Kong have seen their salaries increase 1.1 per cent so far this year, after adjusting for inflation – the lowest pay rise the city has logged since 2021, when its economy was still reeling from the Covid-19 pandemic, a new pay trend survey has found.

In its annual survey published on Thursday, the Hong Kong Institute of Human Resources Management (HKIHRM) found that local employees reported a pay rise of 2.8 per cent from January to September, but inflation reduced the real pay rise to just 1.1 per cent.

This is the lowest increase since 2021, when inflation-adjusted wages dropped by 0.4 per cent amid pandemic-era border controls and restrictions on movement.

‘A divergent landscape’

The HKIHRM survey interviewed 108,300 employees in 173 companies across 12 sectors.

Company performance was the most influential factor behind pay adjustment decisions, ahead of local economic conditions and their competitors’ pay adjustments.

HKIHRM executive council member Lawrence Hung said in a statement that Hong Kong’s economy “presents a divergent landscape,” with most companies adopting a “cautious outlook” as the environment continues to evolve.

“Coupled with the widespread adoption of generative AI and automation, manpower demand is undergoing structural restructuring, resulting in intensified competition for skilled talent,” he said.

The HKIHRM said it expects local salaries to grow 2.9 per cent in 2027, before accounting for inflation.

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Irene Chan is a reporter at Hong Kong Free Press and has an interest in covering political and social change. She previously worked at Initium Media as chief editor for Hong Kong news and was a community organiser at the Society for Community Organisation serving the underprivileged. She has a bachelor’s degree in Journalism from Fudan University and a master’s degree in social work from the Chinese University of Hong Kong.

Irene is the recipient of two Society of Publishers in Asia (SOPA) awards and three honourable mentions for her investigative, feature and video reporting. She also received a Human Rights Press Award for multimedia reporting and an honourable mention for feature writing.